MUMBAI: The Reserve Bank of India (RBI) has amended the Foreign Exchange Management (Export of Goods & Services) Regulations, to free tugboats, dredgers, and offshore support vessels from the requirement of furnishing an Export Declaration Form (EDF) -as has been the case with cargo ships- subject to their re-import into India.
In a separate development, ¹ has raised the limit of advance remittance from $5 minion to 30 million for import of ships without the need for a bank guarantee or standby letter of credit, thereby treating ships on par with the aviation sector for financial facilitation.
“These reforms directly respond to the long-standing concerns of Indian shipowners and maritime service providers, which were pursued by the Directorate General of Shipping, and demonstrate a shift toward ease of doing business in the shipping sector,” said an official.
It reflects India’s readiness to welcome global players seeking to base their maritime operations here, backed by regulatory clarity, policy momentum, and our strategic aim in global trade, he added.
The FEMA Regulation mandated filing of Export Declaration Form (EDF) before non-cargo ships departed Indian waters, which took about 15 days. Previously, only cargo ships were exempted from this rule but with the notification issued in June, non-cargo ships can also be mobilised worldwide.
